
Edison’s investment companies team recently published a review of the abrdn UK Smaller Companies Growth Trust. Managers Abby Glennie and Amanda Yeaman are encouraged by further improvement in the trust’s performance as the UK stock market is once again rewarding companies with strong fundamentals, while interest rate cuts typically lead to small- and mid-cap share price outperformance versus large-cap stocks. The managers’ stock selection approach is bottom-up and involves the use of the Matrix, which is a proprietary multifactor model that screens the investment universe for firms with quality, growth and momentum attributes. Glennie and Yeaman report that many investee companies are issuing positive trading statements, and the trust’s portfolio is trading at the low end of its historical valuation range versus its reference index.
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Original interview published on 09/10/2024 and reposted as a podcast